AIR TRANSPORT & GATS TODAY
                         Annex on Air Transport Services
                                excludes traffic rights and all services directly related to 
                                     their operation
                                but covers CRS, Marketing & Selling, Maintenance & 
                                     Repair of aircraft
                                CTS to review developments & coverage every 5 years
                         Bilateral system of Agreements
                                basis for exclusion 
                                States can control liberalisation process
                                           maintain principles of reciprocity and fair and equal 
                                            opportunity to compete
                                offer procedures for handling disputes
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             INDUSTRY VIEWS ON THE GATS
           GATS is not the vehicle for fundamental reform
           ICAO is best-qualified international agency
             to take account of AT particular characteristics
           Handle air transport on a sectoral basis
           Review offers opportunity to clarify
             scope and coverage of services directly related to the 
               operation of air traffic rights
           Belief that a hybrid system can de developed
             permit multilateral & bilateral arrangements to co-exist
             depending on regional preferences and needs
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            BASIS FOR THE TOURISM ANNEX 
           Tourism & Travel Related Services(Cat. 9)
             covers hotels & catering
             travel agencies & tour operator services
             tourist guide services
             other services
           Tourism Satellite Account system adds
             air, sea, rail & road passenger transport
             certain financial services
             navigational aids
             tourism information services 
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          WHY INCLUDE AIR TRANSPORT IN A 
                     TOURISM ANNEX?
          WTO-Tourism & UNCTAD meetings
            neither body has direct responsibility for air transport
            only sources for this argument
          Arguments include:
            need to focus on tourism sector as a whole
            anti-competitive practices in network services
            developing countries at the mercy of abuses of a 
              dominant position 
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            WHAT ARE THE CONSEQUENCES?
           Air transport in a Tourism Annex
           Would destroy Air Transport Annex 
             take out 2 of 3 services covered
           Split GATS coverage of air transport
             passenger and freight
             remove common services
           Marketing & Selling only service covered
           Need to re-examine GATS legal framework
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